Hays profit slumps amid tough market backdrop and CEO departs

Fri, 27th Feb 2026 11:19

(Alliance News) - Hays PLC on Friday reported a decline in first half earnings and said it has kicked off a search for a new boss, after Dirk Han's immediate resignation as chief executive officer.

The recruiter's shares were down 9.1% to 40.76 pence each on Friday morning in London.

Pretax profit in the six months to December 31 declined 49% to GBP4.6 million from GBP9.1 million a year prior. Revenue fell 3.4% to GBP3.25 billion from GBP3.37 billion. Net fees, which strip out payments to temporary staff and other agencies, declined 8.6% to GBP453.3 million from GBP496.0 million.

London-based Hays slashed its interim dividend by 84% to 0.15 pence a share from 0.95p.

"Net fees declined by 9% in the first half against a backdrop of continued macroeconomic and political uncertainty. However, we have executed our strategy well and our decisive actions delivered strong, sector-leading growth in net fee productivity, a structurally improved cost base, and improved profit performances in our UK & Ireland and Australia & New Zealand businesses," Chief Financial Officer James Hilton said.

The recruiting firm's consultant headcount stood at 5,759 at the end of the half-year, down 15% from 6,810 year-on-year and 5.1% from 6,070 at the end of June.

"We expect the total group headcount will continue to decrease as out multi-year programme to transform our front, middle, and back-office functions will significantly reduce overheads and streamline processes", the company added.

Hays said permanent job flow and activity levels "are in line with pre-Christmas levels", while remaining challenging in France and Germany, while temporary volumes in UK & Ireland, as well as Australia & New Zealand "have returned modestly ahead of prior year and are now in-line with pre-Christmas levels".

Hays said CEO Hahn has stepped down with immediate effect "for personal reasons".

Chief Digital & Technology Officer Mark Dearnley will become interim CEO until a permanent successor is found.

"It has been a great honour to be part of Hays for the past 28 years and a privilege to lead the business in recent years. Thank you to the many remarkable colleagues I have worked with over the years. Hays is a great company with a bright and exciting future ahead of it," Hahn said.

By Martin Miraglia, Alliance News reporter

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